Derek Powazek - no, I hadn't heard of him until today either - is, according to the blurb: "one of the top 40 "Industry Influencers" of 2007 by Folio Magazine..has worked the web since 1995 at pioneering sites like HotWired, Blogger, and Technorati".
A designer, apparently.
He doesn't care much for SEO.
The fact we may never heard of him just goes to show that the web is a big place. It is quite common that the rockstars in one niche can be unknowns in an adjacent niche. It is therefore no surprise that those who spend a lot of time in separate niches may not understand each other particularly well.
If Someone Charges You For SEO, You Have Been Conned
Search Engine Optimization is not a legitimate form of marketing. It should not be undertaken by people with brains or souls. If someone charges you for SEO, you have been conned
Uh-huh.
Well, I'm sure some SEO is undertaken by people without either brains or soul, but the same could be said of web designers.
It is true to say some web designers are clueless about the web, seemingly only interested in crafting pretty pictures. In Flash. They charge clients a fortune for it, and have no idea whether their self-indulgent nonsense will add any value to the clients business. It's barely even a consideration.
That's rather misleading. It might be true, but it's still misleading. Some web designers, just like some SEOs, are pointless. That doesn't mean all SEOs or web designers are pointless. Unfortunately, Derek thinks the entire SEO industry is a con.
Judging an entire industry by what some bad actors do is wrong.
And so, like the goat sacrificers and snake oil salesmen before them, a new breed of con man was born, the Search Engine Optimizer. These scammers claim that they can dance the magic dance that will please the Google Gods and make eyeballs rain down upon you.
Do. Not. Trust. Them
Yawn.
Of course a good SEO can "make eyeballs rain down on you". We do it every day. A good SEO can take a site where a "designer" has indluged in what loosely passes for an adult version of finger painting and get it ranking under appropriate keywords. SEOs do this by identifying keyword traffic (demand) and ensuring pages (supply) meet that demand. We untangle messes made by designers and developers and we implement web marketing strategy where there was none.
Whilst Derek is wrong about SEO on a number of levels, he says some stuff I agree with, stuff we often talk about on this blog.
Make something great. Tell people about it. Do it again.
That’s it. Make something you believe in. Make it beautiful, confident, and real. Sweat every detail. If it’s not getting traffic, maybe it wasn’t good enough. Try again.
Then tell people about it. Start with your friends. Send them a personal note – not an automated blast from a spam cannon. Post it to your Twitter feed, email list, personal blog. (Don’t have those things? Start them.) Tell people who give a shit – not strangers. Tell them why it matters to you. Find the places where your community congregates online and participate. Connect with them like a person, not a corporation. Engage. Be real. Then do it again. And again. You’ll build a reputation for doing good work, meaning what you say, and building trust."
Seth Godin says the same thing. We often quote Seth.
But the problem with "making something great" is that the search engine may not think it is great. This is because a search engine is stupid. It's a machine. And like any stupid machine, it may not recognize greatness, especially if it can't crawl it, or if that greatness doesn't exist in a form it finds palatable.
SEOs help make sure the search engines don't miss greatness.
Derek appears to think SEO is mostly about crawling and hacking. Competent SEOs know that crawling is one part of the puzzle, and most have never hacked to get links. SEO is mostly about the publishing and marketing strategy that comes out of keyword research. Most designers don't understand this concept and therefore misinterpret how SEO works.
As for publishing content for Google, then - yes - guilty as charged, By making content Google wants, Google rewards you. Don't, and it won't. Content can satisfy both Google and humans. It is false to suggest content that appeals to Googles algorithms isn't what humans want to read. Google wouldn't be a business if their results didn't satisfy humans.
Web Design Is Mostly Unimportant ;)
Here's a quote Derek makes lower down in his comments section:
Also, I didn’t call SEO people “fucktards” because that wouldn’t be fair to actual retarded people.
For a "influencer", the guy sure is mature.
Let's try that with web designers to see if it is any less vacuous:
Also, I didn’t call web designer people “fucktards” because that wouldn’t be fair to actual retarded people."
Nope. Still vacuous.
I have nothing against the web design community. I use web designers - good ones - who understand a little about SEO. Good designers who understand a little about SEO are as rare as hens teeth. And even though they do understand a little about SEO, that still leaves the real SEO work to do, which is identification of traffic streams, content creation and link building.
SEO plays, like eHow and Mahalo, attract hundreds of millions in venture capital funding. SEO play About.com sold to the NYTimes for $410 million. Microsoft and Yahoo employ inhouse SEOs to advise their staff and maximize traffic to their content.
Meanwhile, content management systems are free. Great looking templates are cheap. The worlds most valuable web properties don't use "designery" design. They place most emphasis on function. The web is evolving from the crafted, fixed brochure into a platform. Perhaps custom design just isn't as important as it once was. Design has become commodity.
Now, I know that web design is about a lot more than making pretty pictures. It's about structure and interaction. Defining design narrowly as "picture making" is just as stupid as Derek's implied narrow definition that SEO is about crawling, hacking and generating low quality content intended only for Google. Such narrow definitions can lead to false assumptions and conclusions.
In the above interview Steve Balmer states that search innovation has slowed down over the past 5 years compared to the 5 years prior. While committing to pouring billions of Dollars into the search market, Steve Balmer does not think that search has kept up its rate of innovation. But this perception is actually a fib. A lie. One that Steve must tell himself AND the media in order to try to gain press coverage for Bing and justify what will amount to a very expensive competition in the search marketplace. And it is a lie the media mush push to be able to write about / hype THE NEXT GOOGLE!!!!!!
Search Innovation is Speeding Up
The reason I know that search keeps speeding up is that I write about it. We offer subscribers a monthly newsletter, have forums that we participate in daily, and blog about the latest developments in search. This past month I have done a week of traveling and 2 conferences, but I have absolutely struggled to keep up with the all the changes recently (in spite of closing our site off to new members). Frankly I am amazed at how Danny Sullivan is able to put conferences together and still keep up with everything!
To understand the search game you must first understand that Google is first and foremost a public relations driven company which sells itself as a technology company. This is precisely why they market their browser/operating system as a browser and not an operating system...to avoid the regulations on (and comparisons with) Microsoft.
Now some of the changes may not be noticeable to the average searcher because Google has become more refined over the years. But it does not mean that the market lacks innovation. I thought it would make sense to put a post together to highlight some of the ways search has changed so far this year.
Here's my current idea. I believe that Google's staff contains more statisticians than any other specialty. The algo is, more and more, driven by statistics and probability. These statisticians watch query data as well as backlink data. That's what jumped out at me while re-reading this patent: backlinks PLUS queries.
....
This is my current brainstorming area, and it's why I recommend the idea of ATTRACTING backlinks more than "building" them. Backlinks alone cannot create a statistically correct footprint for a growing, thriving website. Even though such a "dummied-up" impression has been a working tool for improved ranking in the past, it's a tool whose future is getting more and more cloudy.
Creating a legitimate looking link profile by doing nothing but push marketing keeps getting harder as Google refines what they are looking for as a natural link building profile based on better statistics. If your link building efforts revolve around public relations, publicity, and brand then you are good to go. But if they are mechanical and aggressive you can use fairly similar link building strategies on 2 parallel sites and see one rank while the next is stuck somewhere in Google hell. From the above linked 5 Googler interviews you can see how Google is constantly working to improve localization, word relationships, indexing, and spam detection. QDF + universal search further complicate the search results.
Filtering Information
Beyond the core ranking algorithms there are also new ways to sort through information.
Google has added many options / filters / lenses to view search through, including links to...
vertical databases (like Videos, News, Blogs, Books, Forums, and Reviews)
results within specific time frames
ways to navigate related searches (via Related searches, Wonder wheel, Timeline)
additional filters (like displaying images from the page, more text, fewer or greater shopping sites)
Thinking through those type of filters with universal search in mind (and Google's new caffeine index in place) you could see how Google can further alter the search landscape on a query by query basis. Give me something fresh, give me old trusted stuff, give me at least 1 authoritative review, etc. In select markets this can be further refined by editorial partnerships like the health onebox.
Here are recent SEO results. And when authoritative SEO related sites (like SEO Book, Search Engine Land, SEOMoz, SE Roundtable, Search Engine Journal, Search Engine Watch, etc.) publish fresh posts they quickly get mixed into the top 10 to 20 search results (similarly to how Google News results get mixed in). As Google tests mixing in different types of results they can track user response on a per query basis, and bucket different related keywords together.
Inspired User Interface Innovation
A lot of the innovations come from competing search services. Consider that
Google's SearchWiki (and SideWiki) were heavily inspired by Wikia Search.
Yahoo! implemented search suggestion features widely before Google did.
Ask 3D pushed about a lot of the universal search sort of ideas.
Google tried to clone Youtube, right up until they were forced to buy it.
They are also ramping up their ad exchange. Traditionally Google has tried to credit the last click with most of the value since they are the #1 search company. But brand advertisers buy branded display ads based on mushy feely impulses...and so search can't keep taking all the credit forever if Google wants to expand the online ad pie to become a $100 billion company. As display ad clickers fall off a cliff, Google is beginning to show view conversions (conversions where an ad was viewed but not click) to further justify fuzzy brand spend. Hey if they have ads on 80% of the WWW then you are going to think those ad views created some conversions, even if they were ignored.
It doesn't matter what regulations appear, advertisers feel the need to buy those ads because that is where the distribution is. Currently Google (and Facebook) have such domination over advertisers that they can mass ban them and shut them down overnight as desired, in spite of the economic climate.
There is going to be continued innovation in the online advertising space as marketers better test / recommend / track / explore / learn how to better automate blending ads and content.
Why Write a 5 Page Blog Post With ~80 Links in It?
3 reasons...
to help me collect my thoughts and share them with you, our readers! :D
to point out that anyone talking about a lack of innovation is search is speaking from ignorance, hyping public relations messaging to the media, and/or lying
to help push to save Yahoo! Boss. By some measures it might be bigger than Bing AND it if it stays around it will help ensure that search keeps innovating at faster and faster rates with healthy market competition
Sorta an old post that I forgot to publish until today! Having the site closed to new members has given me time to start working through a few of my almost done posts that were never published yet. It's hard to have time to do everything while growing a few businesses...and thus the blog needs a little TLC ;)
Media has traditionally been afforded a wall between editorial and advertising due to limited marketplace competition. But, as Jim Spanfeller stated, the perception of value in "last click marketing" where search gets most of the credit for the entire demand creation and fulfillment cycle, is killing the value of online content:
A publisher can and should price their inventory at levels that will meet the market expectations and drive their business model. What they should not do is allow some sort of invisible hand (or should I say hands) to price their inventory against a backdrop of objectives that can and often does change at a moment’s notice. This practice has fundamentally driven pricing down across the web and, perhaps more importantly, changed the success metrics from ones based on “demand creation” to ones driven by “demand fulfillment.”
Worse yet, the leading metrics most closely track how the poorest members of society interact with media, creating a media ecosystem designed to exploit the poor. The above linked article states "we now know that 16% of web users generate 80% of clicks and that this 16% represents the lower income and education segments of the total user base."
It may have cost Google 1 day of revenues to create the default analytics tool, which by default has a last click wins behavior that few people know how to edit. They can even add more features like tracking SEO rankings without risk because they know few people will use them.
Google's web domination is so impressive that experienced and well trained journalists writing for publications like Wired mistake Google's mission statement as the goal of the web. Literally...
The Internet’s great promise is to make the world’s information universally accessible and useful. So how come when you arrive at the most popular dating site in the US you find a stream of anonymous come-ons intermixed with insults, ads for prostitutes, naked pictures, and obvious scams?
Gary Wolf should know that was actually Google's mission statement, not the goal of the web. ;)
For the $299 recurring that business.com charges for links that are nofollowed (thus not counted by search engines) & hidden in the sidebar (thus rarely seen by end users) on pages that are sometimes not even indexed (adding invisibility to the further lack of visibility), there are far better options BOTW charges a $299 one-off (non-recurring) listing fee. Some other good directories that do not charge recurring fees would include: JoeAnt, GoGuides & Gimpsy. Curlie is free, though it is hard to get listed in promptly as it relies on volunteers.
Update on 4/15/2013...Be Careful!
Since Business.com has been bought out by Resource Nation, I get the sense that things have went downhill over there in terms of customer service.
In the past there was a feature in the interface where you can set renewals to manually or automatically renew. That feature disappeared. When that feature disappeared & I wanted to cancel a few listings (client projects we were no longer engaged in, sites that were sold off, sites that were not performing as well as hoped, loads of things change online over the years, etc.) I was told that feature would be coming back soon.
That feature has not come back.
I manually emailed listings I did not want to renew & that was that, or so I thought. Yet some of those that had a 9-month lead time asking that they not be renewed were still renewed!
Recently there was the second round of automated renewals on listings I previously asked to be canceled. Being frustrated with repeated recharges on our credit card (in some cases for sites that were sold off or client projects we were no longer engaged in) I put a gift card in the place of my credit card. I was willing to let all our listings expire rather than be consistently charged against my will on listings I no longer wanted to be active, have no automated way to disable them, have them often still renew even after sending an email asking they not, then having to catch the charge & wait weeks to months for a refund sorting things out through a customer service solution that is so bad that you wished you had a telecom oligopoly on the other end.
They finally did send a refund for that second round of charges, but they sent it to the non-rechargable gift card. And so that was another hour of my life they wasted.
Anyhow, exercise extreme caution when giving your credit card number to Resource Nation. Only do so on projects you think you'll will be aggressively push marketing for 5 years down the road, or give them payments via gift cards or disposable credit cards.
If/when they fix their listing management interface to allow you to manually cancel listings I might recommend them again, but I can't in good faith recommend them without the above warning until they do that.
Below is the old post I wrote before I had this "charge you forever" experience. It no longer reflects my current view of what they are doing.
The Old Post
I generally do not do too much affiliate promotion on the blog here, but when there is an offer that I use that saves our readers money I am all over it. Why not share it? Just as I once promoted the Microsoft adCenter coupon (which has since went away) I am glad to have come across another sweet promotional code - this time for Business.com directory inclusions.
Google Approved Links
In 2009 there are few places where you can buy links without making a Google engineer frown. The Yahoo! Directory, BOTW, and Business.com are 3 of the most trusted web directories that have rigorous enough editorial policies which Google likes. They have been around a long time and Google trusts them.
For our community members I scored a Business.com coupon about a year ago, and surprisingly, Business.com just recently got on CJ offering public discount codes. I have not yet bought any of their PPC product, but I have been a BIG buyer of their directory listings...we literally have dozens of them! It is part of our SEO process for the sites we care about most and really invest in.
So if you have not yet submitted to Business.com, now might be a good time to submit your site while this coupon is still available publicly. This link is a great link, especially for new websites and websites that have not yet reached the top of the search results. And for larger businesses you can also submit key deep links as well.
The following is a guest post by Ari Ozick, a member of our SEO Community who frequently shares great insights. :)
The above graph is based on an intensive questionnaire of over 2500 world class SEOs, including freelancers, in-house corporate types and SEO entrepreneurs. In the questionnaire, I asked one simple question – what is the most profitable activity in your business. The results are in, and as the graph clearly shows, Twittering away the day is by far the most profitable activity for most SEOs. Apparently there is more money to be made on twitter then there is in link building and out ranking the competition.
Obviously (I hope), I’m lying. I didn’t conduct any survey. I just made up the graph with Smart Draw. In fact, if I had to guess, I imagine the most profitable activities for companies would be conversion optimization, link building, and public relations.
Here’s the thing, though: I don’t have to guess about any of these answers for my business. I know. If you’re guessing or following other people’s advice on pretty charts (even if it’s backed up by third party expert opinions), then you’re leaving a lot of money on the table. Let me show you how, with a little change in thinking and how you approach business, you can make a lot more money out of what you do, everyday.
Most SEO Blogs have an Agenda
Aaron recently mentioned that there are over 5,000 SEO blogs out there today. A lot of people read the more popular SEO blogs as if they were the Gospel itself. What most of them don’t realize, or don’t want to realize, is that almost all of these blogs have one of a few agendas:
To promote the business running the blog so they can get more clients
To promote the blogger as an SEO expert so he can get more clients.
To get lots of links, so that they can rank for [SEO] and, you got it, get more clients and sell advertising
Granted, there are a few exceptions. The bottom line is, however, that most of these blogs are fundamentally aimed at increasing their readership, their clients, and their reputation.That means that the information they offer is less aimed at being fundamentally useful, and more about furthering their goals. It very rarely is about providing concrete, useful tips that will lead to a direct increase in your ROI.
Don’t Believe Anything Anybody says
Often, someone will come to me and tell me that they’ve stopped writing content, or that they don’t want any reciprocal links, or that they don’t want to be listed on site X. Then I ask them why. Invariably, the answer I get is “I read it on a blog” or “It was on a forum”, or “I saw it on Twitter”. You need to make a business decision based on data, not on what something written somewhere on some forgotten piece of the internet.
Different sites will also have different focuses that provide higher ROI. E-Commerce stores may put more focus on optimizing for conversions from existing traffic, while sites like blogs and forums that sell advertising on a CPM or flat rate model will optimize for higher traffic – link baiting and public relations. Niche Adsense publishers and others operating on the longer tail of search will look to create volume quality content and build links in a more focused manner, sending link juice to the pages that need it most.
Data is King
The only way to make a decision is by looking at data gathered and seeing if the data provides you with enough information to make an informed decision. I think Diorex said it best:
I will share with you the same answer that my employees get.
“Do you have any data?” The answer is usually “No”, or they would not have asked the question.
To which I respond “Well why don’t you run a test and get some data.” Once a test has been run, they no longer ask my opinion because they now have an answer (good or bad, testing will give an answer)
I have said it before and will probably say it again, buying data in the form of testing is the best investment you can make in your business. It is not cheap, which is what scares most would be internet marketers away.
Getting the Data
So Data is what helps make informed decisions. How do you get the data? If you’re doing anything PPC/CPM based, you just need to start running a test campaign and use that data to scale, or alternatively shut down the project before you lose too much money.
SEO is a bit different – no two web sites have the same link profile, and minor differences can lead to very different results in terms of how certain types of links and on page changes will effect changes in search results. That being said, it’s best to have a secondary group of sites so you can measure the effectiveness of different link building methods, without endangering your profitable, money making sites.
Ideally you also need to have a good idea of the link graph in the verticals you work in, and an idea of what competitors are trying to accomplish. To that end, I highly recommend Majestic SEO and SEM Rush (I’m a happy customer, nothing more). There’s nothing like having fairly accurate data without being at the complete mercy of a search engine. It’s a liberating feeling.
What Data Has Taught Me
Data has taught me that what works for one site doesn’t necessarily work for another site. Strong sites with aged links have consistently performed better when they receive low quality links, while newer sites have languished until they received some better links.
In one test, we sent low quality links to an aged authority site in a competitive niche. These are links that are probably not your top priority on your link building list, and certainly not given the time of day on most SEO blogs, yet we saw a definite increase in rankings on competitive terms. In the vertical we had a newer, less linked to site – there was absolutely no movement in either direction for that site. Our testing on authority sites has shown us that you can send almost any type of link and get some benefit, either in rankings boost on a specific keyword or a larger net for long tail keywords. Yet if you tried to rank a new site using the same tactics that clearly work on an old, trusted crusty site, there’s a very good chance the new site would at the very least be filtered, and at the top end of the spectrum be penalized. Of course, defining what is an authority site is another issue – I suggest you go out and test what exactly is an authority site, and reach your own conclusions.
The Bottom Line
You need to be actively running tests and making efforts to build your business and your sites. The only data that you should trust is your own. While it’s good to have an idea of what’s going on in the larger SEO community, what really matters is your rankings. Everything else is, and should remain, secondary.
Ari Ozick is CEO of Wired Rhino and occasionally blogs at AriOzick.com. He would love any constructive feedback or questions you have, either in the comments or direct via email: first name @ wiredrhino.com
How are your referral stats looking? Noticed more traffic from Bing lately?
According to a Nielsen report last month, Bing is growing faster than any other search engine. It was reported Bing had 10.7% of the total search market, up 2% from the month before. Yesterdays report from Hitwise suggests Bing has since dropped to around 8.96 percent.
So, somewhere around 8-10% perhaps.
The new statistics, from internet research firm Hitwise, will make disappointing reading for Mr Ballmer, who has said he is willing to spend as much as $11bn on search. Earlier this week he told The Daily Telegraph: “We’re trying to give Google a little competition in the search business
Microsoft have struggled for along time to make a dent in Google's share of the search market, so it looks like they are beginning to make inroads, albeit slowly. Microsoft have done a ton of marketing to promote Bing. They've introduced cutting edge features like visual search and voice support.
This is not a battle Microsoft can afford to lose, and for search marketers, competition between engines can only be a good thing.
Is Your Site Optimized For Bing?
The thought of adopting different optimization strategies for different engines feels so antiquated now.
Years ago, there used to be a lot of talk about how to optimize for the different engines. Some webmasters would go so far as to serve differently optimized pages to each major engine.
In the past few years, SEO has been about all-Google, all the time, so the rule of thumb is to optimize for Google, and the rest pretty much takes care of itself.
This advice still stands.
Keeping Up With Bing
Google has Google Guy (Matt Cutts). Likewise, the Bing search team regularly reaches out to the SEO community. SEOs should bookmark the Bing Webmaster Centre announcements.
Microsoft released a comprehensive document for Webmasters. Check out page 23 where they address SEO specifically.
Like Google Guy advice, it tends towards the general and is ultimately self serving, but interesting to be aware of, nontheless.
The Bing Difference: Why Bother?
In terms of search engine results pages, the two engines do produce different results. Here's a nifty tool for side-by-side comparisons.
Why should you be interested in Bing at all?
Even though usage is lower, the user demographic for Bing is different to that of Google. Ask search marketers and you'll get anecdotal evidence that Bing/Yahoo users don't tend to be as web savvy as Google users, use the web less often, are more likely to click on ads, and are more likely to be involved in online shopping, whilst Google appeals more to researchers, webheads and geeks. If you're engaged in web commerce, you need to be thinking about Bing.
Bing Ranking Tips
From the Bing Features For Webmasters document:
Because of this new way of thinking about search, some webmasters might initially be concerned that the shortened primary organic listing in the new Bing SERP might render their SEO efforts as less effective. Instead, Bing makes it easier to compete for broad terms because it surfaces more categories automatically, increasing the number of results on the page and generating more relevant content.
In reality, the same SEO strategies you use for Google apply to Bing.
1. Get Your On-Page SEO Right
Nail the basics.
Make sure your content is unique, use H tags for titles, use alt tags for images, use unique page titles and description meta tags, one topic per page and ensure your copy is free from spelling and gramatical errors. Like Google, you can sign up for MS Webmaster Center which will help you spot and troubleshoot problems.
2. Quality Inbound Linking
Bing appears to favour linking from pages that share a similar topic area.
Is Bing a theme-based engine? Think of a theme as a topic pyramind. A themed site would have the topic "cars at the top. The level beneath that would be makes of cars i.e. Ford, Ferrari, Lotus, then below then models, then components, etc. The theory goes that a site should be all on the same topic to rank well, and links should come from sites on the same topic. Themes used to get discussed a lot, but fell out of fashion when people realised Google didn't use themes.
Is Bing using themes? I don't think so. Like Google, the algorithms appear to be largely page based, as opposed to site based. Bing looks at the topic of the page linking to you. If the linking page is on a similar topic, the target page receives a boost. Have a play around with the title tag on the linking page. Try to ensure the title tag keyword on the linking page is the same as the keyword you're targetting on your optimized page.
3. Domain Age
Domain age seems to be an important factor in Bing - the older, the better. Like Google, Bing tries to establish authority, and domain age is one way it does this.
Got any tips for optimizing for Bing? Any patterns you've noticed, particularly in respect to how Bing differs from Google?
For example, you may have targeted a keyword term you thought was highly important, yet a few obscure long term keywords brought you more business? Or the site you've put all your effort into lately isn't doing as much business as that throw-away site you've been neglecting?
I'm re-reading a great book called "Innovation & Entrepreneurship" by Peter Drucker. Drucker was a management consultant who wrote a lot about demographics, the importance of marketing and the emergence of the information society, with its necessity of lifelong learning.
Drucker discusses the "unexpected success", that thing that works, usually whilst you are pursuing something else.
Drucker gives the example of Macy's, which had the "problem" that it was selling too many appliances.
Why was this a problem?
Macy's considered themselves to be an upmarket clothing store, and clothing is where they had always put their effort. They took pride in it. Clothing defined who they were. Macy's actually wanted to slash their profitable appliance business because they thought it would affect their clothing business.
When Macy's management changed - management unclouded by the emotional investment of the past - they looked at the data, re-oriented around the unexpected success - the appliances - and Macy's business took off once again.
Why Does This Happen
Why does a carefully laid out plan, a plan you're executing well, and into which you have invested a lot of time and effort, not do so well, whilst some throwaway project is returning more?
It could be due to an underlying change in the market, or a section of the market you hadn't previously noticed is now revealing itself. Many people remain blind to such opportunities, even when, like Macys, it is staring them in the face.
We must always be on the lookout for these unexpected successes on the periphery of what we do.
The original IBM computers were scientific instruments meant for arcane academic research purposes. However, businesses started to buy computers for more mundane, everyday functions, like payroll. IBM reoriented their company around business machines, and the rest is history. Had IBM not tuned into what was working, rather than what their business plan said should be working, they probably wouldn't be here today.
The same thing happened with search. Search wasn't working as a business, even after Google was underway, until Google saw the massive opportunity presented by that much maligned, preposterous idea - pay per click - devised by Goto.com. Pay-per-click was working, in a business sense, in that it was a search function that delivered revenue. Google thought they were building a search engine. Remember the search appliance? Google reoriented and built the ultimate marketing machine instead.
How Do You Spot The Unexpected Success?
Sometimes the unexpected success isn't seen at all. Our frame of mind may render the success invisible. If we invest a lot of emotional energy into something, it can cloud our vision to new opportunity.
We need to be attuned to unexpected success. We need to look for those things on the edges. The obscure keywords where the traffic is growing quickly. Try not to second guess the market. Instead, measure what the market is actually doing. The market you were targeting might have moved. Or you may have discovered the edge of a new market no one else has seen.
The shift at Macy's was due to a shift in the underlying market. The market was segmenting. The market was no longer a socio-economic group of shoppers, it was a new, wider group of "lifestyle" shoppers. Had Macy's responded to data, rather than be blinded by their pre-conceptions, they would have exploited this opportunity sooner.
These opportunities lurk in the shadows. And can disappear just as easily.
Have you seen any examples of this happening in your work?
A few months back I had a chat with ShoeMoney and we talked about a lot of marketing stuff. He always speaks of the importance of being able to leverage success to build other related projects. It is typically worth far more money to be a lead player with projects that build off of each other than it is to be a #10 player in many different markets trying to build disconnected brands that can't feed off each other. Even traditional slow moving publishing organizations like newspapers are aggressively leveraging network effects in their SEO strategy.
Networks Allow You to Come From Behind
When you look at Theme Forest they came late to the market, and yet are many times as large as competing businesses that are twice as old. Envato was launched in 2006, and in spite of coming late to market they were nearly instantly successful. Owning popular blogs helped them create thriving marketplaces, and the marketplaces help them make the blogs more popular. The promotion is circular.
Most Leading Web Companies Use Networks
Larger web networks like IAC, Amazon.com, Yahoo!, Internet Brands, Quinstreet, Expedia, Classified Ventures, BankRate, Monster.com, and Demand Media employ the same tactics. At $170 million Mint was a cheap buy for Intuit just to block out competition. Any additional distribution and cost savings are a bonus. Once you have distribution you have free inventory to promote a new site into a related vertical. And this strategy works with smaller niche sites as well. Publishing this site made it easy for us to get a lot of exposure for my wife's PPC strategy flowchart.
We originally gave away free SEO tools mainly with the ideas of building links and promotion in mind. But now they also help establish a customer funnel while commoditizing the value of some similar business models. And because many of the tools are decentralized (as Firefox extensions) maintenance costs are much lower than someone who centralizes everything. Our customers on average tend to be toward the more sophisticated end of the spectrum, so giving away useful and extensible tools helps us meet that market. But a lot of our business strategy has been made up as we went along, rather than having an aggressive master plan in place.
Watching Big Companies Develop Strategy
Some companies are driven by big goals and 5 (and 10) year plans. Adobe bought Omniture and plans on offering deep analytics into user interactions with flash widget ads. Out of nowhere Adobe entered the ad market.
This might be the most subtle yet important shift that marketers face as they deal with the reality of new media. Marketers aren't renters, now they own.
For generations, marketers were trained to buy (actually rent) eyeballs.
...
Suddenly the new media comes along and the rules are different. You're not renting an audience, you're building one.
Google is GOD of the Web
One of the best companies to study from the perspective of using market leverage to enter new markets is Google. Recently they struck a deal with Warner to bring their music back to Youtube. But even while their music was not on Youtube I was still able to listen to it - on Youtube ;)
Make the service essentially free to buy marketshare, become the marketplace, and kill the business model for competing start ups in the space.
Promote it across search, the AdSense content network, and via a thick public relations program.
Use the work of thieves and the blurry parts of copyright law to diminish the value of non-partner content to try to force non-partners into a formal partnership.
12 to 36 months later start charging a fair to normal market rate for the service. Claim the service makes no profits until it is an undeniable cash cow.
One of the more cynical, but perhaps accurate, in depth research reports on Google's use of market leverage is Scott Cleland's Googleopoly [PDF]. You might not be able to apply every idea in there to your projects, but it should help you understand where Google intends to intersect with your market and how you can leverage some of those touch-points to your advantage.
One last tip, from Larry Ellison, "Pick your competitors carefully for you will quickly come to resemble the companies you compete with."
Top Intersection: Most of these people are not available for traditional client consulting projects because they simply lack the time needed to do them and run many successful projects of their own.
Right Intersection: The person who is available and under-priced quickly gets overworked. I have experienced this with multiple contractors in other fields where they would offer killer services and be surprisingly affordable and fast...and then on the next project they would disappear.
The guy who made the logo for SEO Book back in early 2004 was probably the most talented and most unreliable logo designer I have ever worked with. Sometimes he would be fast, sometimes he would be slow, and sometimes I would pay him and get no response. I wanted the guy to become more successful and reliable so much so that I offered him tons of free marketing so long as he would be available for the boatload of work I was going to send him. He said sure. Before beginning that marketing campaign I asked him if he was ready and got no response. ;)
And last year there was a designer/developer that had amazing skills. We hired him full time and it took him 2 months to make a website design. There are a lot of people in the world who are talented at what they do, but just are not skilled at business and/or do not approach their business like a business.
Left Intersection: There are lots of people who are good at sales who have no substance. If an SEO firm contacts you out of the blue (via tele-spamming or email spam) that is a good hint that they have more salesmen on staff than they have practitioners. If SEO is bolted on as a package for cheap then it is usually a scam.
It is nearly impossible to have enough time to study a fast changing craft, brand yourself as an expert in the space, and yet still find time available for doing consulting. It is not hard to do any 2 of the 3...but all 3 is brutally tough. In consulting so long as you have popularity you do not need much knowledge, as some well known SEOs have proved. But knowledge without popularity can be hard to monetize effectively.
Even if you are pretty decent at sales and have a strong brand it is hard to make an SEO services business model scale without watering it down. And watering down is rarely a solution because it leads to churn.
The guy who speaks at 40 SEO conferences a year does little SEO work...his job is to generate leads for the firm where an intern can work on the project. And the projects that the interns work on are rarely top shelf because you often pay expert rates while getting automated and systemized mystery meat services from someone new to the market.
Some of the smallest clients tend to be the most demanding, even while paying crumbs. And Google/the search market, which is becoming more corporate, is making it harder and more expensive to service such clients profitably.
Corporate client projects which at first may seem like mega-paydays still perform poorly when compared against putting the equivalent effort into growing your publishing projects.
Rather than watering down we have decided that scarcity and value are a better strategy. But that is still a work in progress. This site is about 90% of my work time, had a 5 year head start on most of our other publishing efforts, and yet the SEO industry is so hard to monetize (unless you use loads of hype) that this site earns a minority of our income. As we get better at sales we can try to increase earnings...but lately we have just been pushing more on what is working and maintaining this site's quality for existing members (and closing it off to growth) while putting a bit more effort into the higher yielding projects.
In the past I historically set my prices too low. Some of that was due to starting out with a low self-esteem, but just as much of it was due to not appreciating the actual value of what I was delivering. Because I could do something cheap I had no problem doing so, even if my pricing was well below the value delivered. Another thing that caused me to charge too little was a distaste for traditional salesmanship techniques (a difficult hang-up if you are a marketer!)
Where I learned how off my pricing was is when I reviewed work done by some competing firms for 5 figure sums. Some of which was of far less value than what I was offering in my $79 ebook. Well that made me feel a bit like an idiot.
When Low Prices Make Sense
I think when a person is new to a field it makes sense to set prices somewhat low so you can...
overcome starting friction
build customer experiences & interaction
get feedback from customers on how to improve your product or service
gain testimonials & social proof of value
Setting prices a bit too low helps subsidize creating other pieces of your sales strategy...whereas if you set prices way above market expectations you won't get sales or market feedback.
The Problems With Discounting
But typically discounting should be done for a short period of time, only as something that is given as a reward for being fast acting. If you frequently discount you just lower the perceived quality and value of your product. And while you think you might be giving someone a good deal by discounting you have to look at it in the broader perspective. Offer a lower price and the customer...
respects and values it less
is less likely to use it and act on it
is more likely to be demanding (since they don't see as much value they expect you to spend more time and effort proving it)
all the while you...
become over-worked and burned out
work over twice as many hours servicing twice as many people (and, not surprisingly, miss an email or 2 because you are constantly behind)
sell your time at a discount while watching your health erode
Really the whole set up to discounting is quite stupid.
What About Free?
In a world where traditional advertising is losing efficacy, offering something free that helps gain mindshare and establish a relationship is smart. But free does have limitations. One of the biggest limitations is a sense of entitlement. If a person is a non-paying customer they are not a customer. You have to assume their complaints are worth $0. You owe them nothing and they should be thankful for whatever valuable tools and services you offer for free.
Overcoming Entitlement
After you get enough momentum it makes sense to erect barriers to entry so you can gain value while giving it away. Rarely do one way exchanges build lasting value. If 1,000's of non-paying users are sending you emails asking questions then they are noise that must be filtered through ... a non-trivial cost.
The hard part is that it feeds the ego when you give stuff away and help people out. You think that you help so many people and that lots of people care for you. Put any barrier in their path and you will see how selfish and worthless many of those people are though. Every barrier brings about some level of hate from the most ignorant, greediest, and least appreciate members of the crowd. But if you get something like this you can't respect the sender:
This is crap. Every download link goes back to the same page. Like how are you suppose to download the tool if there's a download link which say #.
Instead of spending time collecting peoples emails and spamming them you should try more in giving better product and easier way to access them.
I like your tools, but it was easy last year to use them, now it's a waste of time. If this system keeps on getting more slower and I've to go through more registering then using I'm better off using something which is less good but instantaneous, which was your product, but it's not anymore.
So I hope you start easying out the process of installing your tools or you'll start loosing your customers.
So that person...
is not paying me
uses our CUSTOMER support area
tells me they like our tools
wants me to create BETTER products
calls me an email spammer
expects me to dismantle my sales funnel in return for nothing (other than random critical hate mail)
tells me I will lose customers if I don't make it easier for freeloaders to use my stuff
never intends to pay me
As far as my business interests go, that person is worth less than nothing. If they are still breathing, it is no doubt a waste of oxygen.
Would I rather spend my time helping out that ungrateful USER, or would that time be better spent spending it with someone who loves me and cares for me?
Resourcefulness
Now some people have a tough break and sometimes it is worth helping them out. But in most cases a lack of resources is simply caused by a lack of resourcefulness. And, since change comes from within, if you try to help those kinds of people out they are far more likely to pull you down than you are to lift them up.
Recently a person asked me via a blog comment what they should do if they are smart but can't afford a conference ticket and know nobody. The frame of that question is one which is lacking in resourcefulness. When I was new to the SEO industry part of why I got known was because I syndicated content to other sites, participated in some online forums, moderated some online forums, and blogged day in and day out. I further spent tons of money giving away free software, which some people appreciate ;)
And even when I was less known, had no money, knew nobody, etc. I did not see those as obstacles. They were opportunities. Since I lacked capital I could leverage my time as an undervalued resource until the market started to value it more. I got a job to create cashflow, spent everything I could on learning + networking, helped organize a conference in exchange for a free pass to go to it, and out of the process the only thing I regret is that I didn't savor obscurity as much as I should have. :D
